New rules for ATM/debit cards
Posted in: Banking
Before new bank regulations, you could “overdraw” your balance when making an ATM/Debit Card purchase. However, this service came with hefty costs.
Your bank probably charged you $25 to $35 each time you exceeded your balance. Even a simple “milk and bread” purchase of a few dollars would generate this charge if it caused you to overdraw your account.
You will no longer “enjoy” this service, unless you choose it. You can “opt in” to continue the overdraft service – and pay the charges – if you wish. You can also accept the new regulations that prohibit these expensive “loans.”
The good news: You won’t be charged any fees for exceeding your available balance. The bad news: You will have your debit card rejected if purchases exceed your available balance.
You must decide to accept the embarrassment or discomfort if you attempt a purchase in excess of your bank balance or pay for having minor overdrafts covered. There is no “right” answer. When your bank asks for a choice, simply tell them which option you prefer.
The key is to understand the new ATM/Debit Card rules. Budget your purchases and monitor your account balance. Compare bank rates to select the least expensive fees for ATM overdrafts, if you want to keep that protection.
Also, compare savings rates as you sometimes can arrange, for a small fee – often only $5 or $6 – for your bank to transfer money to cover any ATM/Debit Card overdrafts.
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